Employment and Industrial Accident Insurance Premium Late Fees Reduced from 9% to 5%

[Sejong=Asia Economy Reporter Kim Hyunjung] The government will reduce the maximum limit of late payment fees from 9% to 5% to ease the burden on employers who fail to pay employment and industrial accident insurance premiums within the deadline. In addition, it will be possible to claim industrial accident insurance survivor benefits or nursing benefits without the previously mandatory family relationship certificate.

On the 19th, the government reviewed and approved partial amendments to the 'Industrial Accident Compensation Insurance Act' and the 'Act on the Collection of Employment and Industrial Accident Insurance Premiums' through a Cabinet meeting.

First, through the amendment of the Employment and Industrial Accident Insurance Premium Collection Act, the government lowered the upper limit of late payment fees on unpaid employment and industrial accident insurance premiums from 9% to 5%. Until now, if the premium payment deadline was missed, a daily rate of 1/1000 was added for up to 30 days, and from the 31st day to the 210th day, a daily rate of 3/1000 was added, resulting in a maximum late fee of 9%. Going forward, a daily rate of 1.5/1000 will be added for up to 30 days after the deadline, and a daily rate of 6/1000 will be added from the 31st day to the 210th day, lowering the maximum limit to 5%.

If the related amendment is promulgated in January, the adjusted late payment fee limit will apply to unpaid employment and industrial accident insurance premiums from January of this year.

Along with this, starting from the end of July this year, the government will utilize the Supreme Court's computerized family relationship registration information when verifying eligibility for industrial accident insurance benefits.

Until now, the bereaved families of industrial accident victims and injured workers had to submit a family relationship certificate to the Korea Workers' Compensation and Welfare Service to verify eligibility for insurance benefits. However, with this amendment establishing the basis for joint use of the Supreme Court's computerized family relationship registration data in the Industrial Accident Compensation Insurance Act, benefits can now be received immediately without attaching a family relationship certificate.

An official from the Ministry of Employment and Labor explained, "This legal amendment resolves the inconvenience caused by document submission for bereaved families and injured workers and establishes a system that allows for prompt compensation."